How to Apply for a Tax Declaration (New Property)
A Tax Declaration is one of the most important property documents in the Philippines. It is the official record maintained by the City or Municipal Assessor's Office that identifies a property for real property tax (RPT) purposes. Under Republic Act No. 7160, also known as the Local Government Code of 1991, every parcel of land, building, machinery, and other improvement must be declared for taxation. This comprehensive guide explains the complete process for applying for a new Tax Declaration, the documents you need, the fees involved, and what to expect at every step.
It is important to understand that a Tax Declaration is not the same as a land title. A land title (Transfer Certificate of Title or Original Certificate of Title) is issued by the Registry of Deeds and serves as proof of ownership. A Tax Declaration, on the other hand, is issued by the Assessor's Office and serves as a record for tax assessment and collection purposes. While a Tax Declaration is not proof of ownership, it is a strong indicator of a claim on the property and is required for many government and private transactions.
Tax Declaration at a Glance
Processing Time
3 to 10 working days from submission of complete requirements. May take longer if property inspection is needed or during peak filing periods (e.g., general revision).
Cost
Minimal filing fees that vary per LGU (Local Government Unit). Typically ranges from P100 to P500 for processing fees. Additional costs for documentary stamps and notarization if applicable.
Where to File
City or Municipal Assessor's Office where the property is located. Usually found at the City Hall or Municipal Hall building.
Legal Basis
Republic Act No. 7160 (Local Government Code of 1991), specifically Title II -- Real Property Taxation, Sections 197 to 283. Also governed by local revenue codes of each LGU.
What is a Tax Declaration?
A Tax Declaration (TD) is a document issued by the local Assessor's Office that describes a real property for taxation purposes. It contains essential information about the property, including its location, area, classification, assessed value, and the name of the declared owner. Every property in the Philippines -- whether land, building, machinery, or other improvement -- must have a Tax Declaration on record with the local Assessor's Office.
What a Tax Declaration IS
- An official record for real property tax (RPT) assessment and collection
- A description of the property including location, area, classification, and assessed value
- Required for paying Real Property Tax (RPT) at the Treasurer's Office
- A supporting document for many government and banking transactions
- An indicator of a claim on the property (but not absolute proof of ownership)
What a Tax Declaration is NOT
- NOT proof of ownership -- only a land title (TCT/OCT) from the Registry of Deeds proves ownership
- NOT a substitute for a land title or certificate of ownership
- NOT a building permit or construction authorization
- NOT transferable by itself without proper legal documentation (deed of sale, extrajudicial settlement, etc.)
Information Found in a Tax Declaration
- Tax Declaration Number (TD No.)
- Property Index Number (PIN)
- Name of Declared Owner
- Address of Owner
- Location of Property (barangay, city/municipality, province)
- Lot Number, Block Number, Survey Number
- Classification (residential, commercial, agricultural, industrial)
- Area (in square meters or hectares)
- Fair Market Value (FMV)
- Assessment Level
- Assessed Value
- Previous Tax Declaration Number (if any)
When You Need a New Tax Declaration
There are several situations that require you to apply for a new Tax Declaration at the Assessor's Office. If your property falls under any of the following circumstances, you must file for a new declaration to ensure proper tax records and compliance with local government requirements.
New Construction or Improvement
When you build a new house, building, or any permanent improvement on a lot that already has a land Tax Declaration. The new building or improvement needs its own separate Tax Declaration. This includes new residential houses, commercial buildings, warehouses, and other structures.
Newly Discovered Property
When the Assessor's Office discovers a property (land, building, or machinery) that has not been previously declared for tax purposes. The assessor is mandated by law to discover and list all taxable real properties within the LGU's jurisdiction for assessment purposes.
Property Not Yet Declared
When an existing property -- whether land, building, or machinery -- has never been declared for taxation. This commonly occurs with old properties in rural areas, inherited lands that were never updated, or properties acquired through long possession without formal titles.
Subdivision of Lot
When a large parcel of land is subdivided into smaller individual lots. Each subdivided lot requires its own separate Tax Declaration. This commonly happens in estate settlements, land development, or when portions of a lot are sold to different buyers.
Requirements for a New Tax Declaration
Before visiting the Assessor's Office, prepare the following documents. Requirements may vary slightly per LGU, so it is advisable to call or visit your local Assessor's Office first to confirm the specific requirements.
| Document / Requirement | Details & Notes |
|---|---|
| Accomplished Application Form | The official application form for new Tax Declaration provided by the Assessor's Office. Fill out completely with the owner's information, property details, and purpose of declaration. Some LGUs provide downloadable forms on their websites. |
| Land Title (TCT / OCT / CCT) | Photocopy of the Transfer Certificate of Title (TCT), Original Certificate of Title (OCT), or Condominium Certificate of Title (CCT) from the Registry of Deeds. Bring the original for verification. If the property is untitled, bring tax declarations of adjoining lots, survey plan, or other proof of claim. |
| Building Permit (for improvements) | Required when declaring a new building or structure. Issued by the City/Municipal Engineering Office or the Office of the Building Official. This serves as proof that the construction was authorized and provides details about the building specifications (floor area, number of stories, type of construction, etc.). |
| Occupancy Permit (if applicable) | Required for completed buildings. This certifies that the building has been inspected and is safe for occupancy. Issued by the Office of the Building Official after final inspection. Not needed if the building is still under construction. |
| Vicinity Map / Sketch Plan | A location map showing the property in relation to nearby landmarks, roads, and adjoining properties. This helps the assessor identify and locate the property for inspection. A simple hand-drawn sketch is usually acceptable, but a geodetic engineer's survey plan is preferred. |
| Valid Government-Issued ID | At least one valid ID with photo and signature of the property owner (e.g., passport, driver's license, PhilSys/National ID, UMID, SSS ID, PRC ID, postal ID, voter's ID). Bring the original and a photocopy. |
| Special Power of Attorney (if representative) | If the property owner cannot personally file the application, a duly notarized Special Power of Attorney (SPA) must be presented by the authorized representative, together with the representative's valid ID and a photocopy of the owner's valid ID. |
| Photographs of the Property | Recent photographs showing the front, sides, and rear of the building or property. Include photos of the interior if possible. These help the assessor with the initial appraisal and may reduce the need for a physical inspection. At least 3-5 clear photos are recommended. |
Note: Requirements may vary per LGU. Some Assessor's Offices may also require a Barangay Certification, Certificate of Completion from the building contractor, or a certification from the homeowners' association (for subdivision properties). Always verify with your local Assessor's Office before filing.
Step-by-Step Process for Getting a New Tax Declaration
The following steps outline the complete process for applying for a new Tax Declaration at the City or Municipal Assessor's Office. Follow each step carefully to ensure a smooth and efficient application.
Visit the City/Municipal Assessor's Office
Go to the Assessor's Office located at the City Hall or Municipal Hall where the property is situated. Inform the receiving clerk that you wish to apply for a new Tax Declaration for a newly constructed building, undeclared property, or subdivided lot (as applicable). The clerk will provide you with the application form and a checklist of requirements.
Tip: Visit early in the morning (8:00 AM) to avoid long queues. Some LGUs allow walk-ins while others require appointments. Check your LGU's website or call ahead to confirm office hours and appointment requirements. Bring all your documents on the first visit to avoid multiple trips.
Submit the Application and Required Documents
Fill out the application form completely and accurately. Attach all the required supporting documents listed in the requirements section above. Submit the accomplished form and all documents to the receiving clerk. The clerk will review your submission for completeness and issue a receiving copy or claim stub with a reference number.
Important: Ensure all documents are complete before submitting. Incomplete applications will be returned or held pending the missing documents, which can significantly delay processing. If a filing fee is required, you will be directed to the Treasurer's Office to pay, then return with the official receipt.
Property Inspection by the Assessor
After your application is received, the Assessor's Office will schedule a physical inspection of the property. An appraiser or field inspector from the office will visit the property to verify the following: the actual location and boundaries, the type and quality of construction (for buildings), the current use of the property, and the physical condition of improvements.
What to expect: The inspector will take measurements, photographs, and notes about the property. For buildings, they will assess the type of materials used (e.g., concrete, wood, mixed materials), the floor area, number of stories, and the overall condition. The inspection is usually done within 3-5 working days after application, but this may vary depending on the office's workload.
Appraisal and Computation of Property Value
Based on the inspection findings and the submitted documents, the Assessor's Office will compute the property's value. This involves two key determinations:
- Fair Market Value (FMV): The estimated value of the property based on the LGU's Schedule of Fair Market Values. For land, this is determined by location and classification. For buildings, this is based on replacement cost minus depreciation.
- Assessed Value: The FMV multiplied by the applicable Assessment Level (a percentage set by the LGU based on property classification and use). The assessed value is the basis for computing the annual Real Property Tax (RPT).
The appraisal division will prepare the Field Appraisal and Assessment Sheet (FAAS) and forward it to the Municipal/City Assessor for approval.
Approval and Issuance of the Tax Declaration
Once the City/Municipal Assessor approves the appraisal, the new Tax Declaration is prepared, signed, and officially issued. The Tax Declaration will contain all the property details, including the owner's name, property description, classification, Fair Market Value, assessment level, and assessed value. You will be notified by the Assessor's Office (via phone, text, or email, depending on the LGU) when the Tax Declaration is ready for release.
Timeline: The issuance typically takes 3 to 10 working days from the date of complete submission, depending on the LGU's workload and whether a property inspection was needed. Claim the Tax Declaration by presenting your claim stub or reference number and a valid ID.
Pay Real Property Tax (RPT) at the Treasurer's Office
After receiving your Tax Declaration, proceed to the City/Municipal Treasurer's Office to pay the corresponding Real Property Tax (RPT). The RPT is computed based on the assessed value stated in your new Tax Declaration. You may pay annually (before January 31 to avail of discounts) or quarterly (March 31, June 30, September 30, and December 31).
Early Payment Discount: Most LGUs offer a 10% to 20% discount on RPT if you pay the full annual amount before January 31 of each year. Penalties of 2% per month (up to 72% maximum) are imposed for late payments. Keep your RPT receipts as proof of payment -- you will need them for future property transactions.
Keep Your Tax Declaration and Records Safe
Store your Tax Declaration in a secure place along with your RPT receipts and other property documents. You will need the Tax Declaration for future transactions such as property sale, loan applications, building permits, business permits, and estate settlement. Consider making photocopies or scanned copies for your records.
Note: The Assessor's Office keeps the original record in their files. What you receive is the owner's copy. If you lose your copy, you can request a Certified True Copy from the Assessor's Office for a small fee.
How Fair Market Value is Determined
The Fair Market Value (FMV) is the estimated price that a property would command in the open market under normal conditions. The Assessor's Office determines the FMV based on the Schedule of Fair Market Values adopted by the Sangguniang Panlalawigan or Sangguniang Panlungsod. The method of valuation depends on the type of property:
Land
Schedule of Fair Market Values
Land values are determined based on the Schedule of Fair Market Values (SFMV) adopted by the local Sanggunian. The SFMV is revised every three (3) years or as needed. Values vary depending on:
- Location (barangay, zone, street)
- Classification (residential, commercial, agricultural, industrial)
- Accessibility and proximity to roads
- Surrounding developments
Buildings
Replacement Cost Minus Depreciation
Building values are computed using the replacement cost approach. The assessor calculates the cost to build the same structure at current prices, then subtracts depreciation based on the building's age and condition:
- Type of construction (reinforced concrete, wood, mixed)
- Floor area (total square meters)
- Unit construction cost per sqm
- Age depreciation (typically 2-5% per year)
- Maximum depreciation: 80%
Machinery
Original Cost Minus Depreciation
Machinery installed in or attached to a building or land is valued based on the original acquisition cost minus depreciation. The depreciation rate depends on the type of machinery and its useful economic life:
- Original acquisition cost (including installation)
- Freight, insurance, and taxes paid
- Annual depreciation based on useful life
- Remaining economic value
- Maximum depreciation: 80%
Assessment Level Table (Common Rates)
The Assessment Level is the percentage applied to the Fair Market Value to derive the Assessed Value. Rates vary per LGU but the following are common ranges under RA 7160:
| Classification | City Rate | Municipality Rate |
|---|---|---|
| Residential | 20% | 20% |
| Commercial | 50% | 40% |
| Agricultural | 40% | 40% |
| Industrial | 50% | 50% |
Note: Actual assessment levels vary per LGU. Check with your local Assessor's Office for the exact rates applicable in your area.
Complete Example: Juan Declares His Newly Built House
Juan recently completed construction of a two-story residential house on his lot in Barangay San Jose, Quezon City. The lot already has a Tax Declaration (for the land), but the newly built house needs its own separate Tax Declaration. Here is how Juan went through the entire process:
Gathered All Required Documents
Juan prepared the following documents: photocopy of his Transfer Certificate of Title (TCT) for the lot, the Building Permit issued by the Quezon City Engineering Office, the Occupancy Permit certifying the house is safe for habitation, a vicinity map showing the property location, photographs of the completed house (front, back, and sides), his valid driver's license as government ID, and the existing Tax Declaration of the lot.
Filed Application at QC Assessor's Office
Juan went to the Quezon City Assessor's Office at QC City Hall. He filled out the application form for a new Tax Declaration (building improvement). He submitted the form and all supporting documents. The clerk reviewed everything, found it complete, and issued a receiving copy with a reference number. He was informed that a property inspector would visit his house within 5 working days.
Property Inspection and Appraisal
An appraiser from the Assessor's Office visited Juan's property. The inspector measured the building's floor area (120 sqm per floor, 240 sqm total), noted the type of construction (reinforced concrete, Type I-A), verified the number of stories (2), and took photographs. The inspector also verified the property boundaries and confirmed the lot location. The appraisal data was submitted back to the office for computation.
Tax Declaration Issued
The Assessor's Office notified Juan via text message that his new Tax Declaration was ready. Juan returned to the office, presented his claim stub and valid ID, and received the Tax Declaration for his building. The Tax Declaration showed the property details, assessed value, and his name as the declared owner.
Paid Real Property Tax at Treasurer's Office
Juan proceeded to the QC Treasurer's Office to pay the Real Property Tax for his newly declared building. Since it was still early in the year, he availed of the advance payment discount. He now has two Tax Declarations for his property: one for the land and one for the building improvement.
Juan's Assessment Computation
This is for the building only. Juan also pays separate RPT for his lot based on the lot's Tax Declaration. Total timeline from application to issuance: approximately 3 weeks.
Frequently Asked Questions
Is a Tax Declaration proof of ownership?
No. A Tax Declaration is not proof of ownership. It is merely a record maintained by the local Assessor's Office for the purpose of assessing and collecting real property taxes. Only a land title (Transfer Certificate of Title, Original Certificate of Title, or Condominium Certificate of Title) issued by the Registry of Deeds serves as legal proof of ownership. However, a Tax Declaration is considered strong evidence of a claim or possession of the property and is often used as a supporting document in legal proceedings involving property rights. Courts have consistently held that while a Tax Declaration alone does not prove ownership, it is an indicator of a person's claim of ownership.
What if the property has no land title?
You can still apply for a Tax Declaration even if the property has no land title. Many properties in the Philippines, especially in rural areas, do not have registered titles. In such cases, you may submit the following in lieu of a title: a Survey Plan or Sketch Plan of the property, Tax Declarations of adjoining properties, a Barangay Certification confirming your possession or claim, Deed of Absolute Sale (even if unregistered), or an Affidavit of Ownership/Possession. The Assessor's Office is mandated to declare all properties for tax purposes regardless of title status. However, it is strongly recommended to eventually process the land titling through the Department of Environment and Natural Resources (DENR) for untitled lands or the Registry of Deeds for titled but unregistered properties.
How often is the Tax Declaration updated?
Tax Declarations are updated under several circumstances: (1) During the General Revision of Assessments, which is mandated to be conducted every three (3) years by the LGU; (2) When there is a transfer of ownership (sale, donation, inheritance); (3) When there are new improvements or renovations on the property; (4) When there is a change in classification (e.g., from agricultural to residential); or (5) When errors in the existing Tax Declaration need to be corrected. Property owners are required to report any changes or improvements to the Assessor's Office within 60 days.
What if I disagree with the assessment?
If you believe the assessed value of your property is too high or the classification is incorrect, you have the right to appeal. Under RA 7160, property owners may file a written protest with the Local Board of Assessment Appeals (LBAA) within sixty (60) days from the date of receipt of the written notice of assessment. The protest must state the reasons for the appeal and include supporting evidence (such as comparable property values, independent appraisal reports, or evidence of errors in the computation). If the LBAA denies your appeal, you may further appeal to the Central Board of Assessment Appeals (CBAA) within thirty (30) days. It is advisable to consult with a real estate appraiser or lawyer if you plan to file an appeal.
Do I need a Tax Declaration for untitled land?
Yes. Under RA 7160, all real properties -- whether titled or untitled -- must be declared for tax purposes. The Assessor's Office is required to discover, list, and appraise all real properties within its jurisdiction regardless of ownership status or title registration. Having a Tax Declaration for untitled land is actually beneficial because: (1) It creates an official record of your claim or possession; (2) The tax receipts can serve as evidence of your continuous possession in case you later apply for a free patent or judicial confirmation of title; (3) It is required if you want to sell or transfer the property; and (4) Many government agencies and banks accept Tax Declarations as supporting documents for untitled properties.
What is the difference between a Tax Declaration and a land title?
A Tax Declaration and a Land Title are two very different documents that serve different purposes:
- Tax Declaration is issued by the Assessor's Office; a Land Title is issued by the Registry of Deeds.
- A Tax Declaration is for tax assessment purposes; a Land Title is for proof of legal ownership.
- A Tax Declaration does not prove ownership; a Land Title is the best evidence of ownership.
- A Tax Declaration can be issued for both titled and untitled properties; a Land Title requires a formal registration process.
- Losing a Tax Declaration is easily replaceable (certified true copy); losing a Land Title requires a court petition for reconstitution.
Both documents are important. Ideally, every property owner should have both a valid Tax Declaration and a registered Land Title.
Can someone else file the Tax Declaration application on my behalf?
Yes. If you cannot personally visit the Assessor's Office, you may authorize a representative to file the application on your behalf. The representative must present: (1) A duly notarized Special Power of Attorney (SPA) specifically authorizing the representative to transact with the Assessor's Office; (2) The representative's valid government-issued ID (original and photocopy); and (3) A photocopy of the property owner's valid ID. If the property owner is abroad, the SPA must be authenticated by the nearest Philippine Consulate or Embassy. Some LGUs may also accept a duly notarized Authorization Letter for simpler transactions.
Important Reminders
- Declare new improvements within 60 days: Under RA 7160, property owners are required to declare new improvements, buildings, or machinery to the Assessor's Office within sixty (60) days from the date of completion or installation. Failure to do so may result in penalties and back taxes.
- Pay RPT on time to avoid penalties: Once a Tax Declaration is issued, the corresponding Real Property Tax becomes due. Pay annually (before January 31 for discounts) or quarterly to avoid the 2% monthly penalty for late payments.
- A Tax Declaration does not replace a land title: Even if you have a Tax Declaration, it does not mean you legally own the property. If your property is untitled, pursue the titling process through the DENR (for free patent) or the courts (for judicial confirmation of title).
- Keep copies of all property documents: Store your Tax Declaration, RPT receipts, land title, and other property documents in a safe and secure place. Make photocopies or scanned digital copies for backup. These documents are essential for any property transaction.
- Report any changes to the Assessor's Office: If you make renovations, additions, or demolitions to your property, report these changes to the Assessor's Office to update the Tax Declaration. Failure to report changes may result in discrepancies and complications during property transactions.
- Check the assessment during General Revision: Every three (3) years, the LGU conducts a General Revision of Assessments that may significantly increase or decrease your property's assessed value. Review the new assessment notice and file a protest within 60 days if you disagree with the valuation.
- Transfer the Tax Declaration upon property sale: When you sell a property, the buyer must transfer the Tax Declaration to their name. This requires payment of transfer tax at the Treasurer's Office and submission of the Deed of Sale, BIR Certificate Authorizing Registration (CAR), and other documents to the Assessor's Office.
- Verify your property records periodically: Visit the Assessor's Office at least once every few years to verify that your Tax Declaration records are accurate and up to date. Check for any unauthorized changes, cancellations, or overlapping declarations.
Need Help?
Contact the Assessor's Office
- Visit the City/Municipal Assessor's Office where the property is located
- Usually found at the City Hall or Municipal Hall building
- Office Hours: Monday to Friday, 8:00 AM to 5:00 PM (no noon break in most LGUs)
- Some LGUs accept walk-ins; others may require appointments -- call ahead to confirm
- Bring complete documents on your first visit to avoid return trips
- Contact your LGU's official hotline or website for specific information about your local Assessor's Office
Disclaimer
This guide is provided for general informational purposes only. The requirements, steps, fees, and procedures mentioned here may vary depending on the Assessor's Office you visit. We recommend visiting your nearest Assessor's Office first to confirm the specific requirements and process before preparing your documents.